MIRA INFORM REPORT

Report Date :

27.01.2007

IDENTIFICATION DETAILS

Name :	CARGILL MATRIX FEEDS PRIVATE LIMITED
Formerly Known As :	MATRIX BIOSCIENCES PRIVATE LIMITED
Formerly Known As :	MATRIX VET PHARMA PRIVATE LIMITED
Registered Office :	Flat 101, Ashok Kuteer Apartment, Darganagar Colony, Plot 6-3-668-10-63, Punjagutta, Hyderabad-500082, Andhra Pradesh, India
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	18.11.1998
Com. Reg. No.:	01-30520
CIN No.:	U24230AP1998PTC030520
TAN No.: (Tax Deduction & Collection Account No.)	MYDM01062F
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in producing Medicaments and Aqua Feeds

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having moderate track. However Cargill an MNC has said to acquired 51 % shares in the company and thus company has become subsidiary of Cargill, USA Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for normal business dealings due to the exposure of Cargill to the company.

LOCATIONS

Registered / Corporate Office :	Flat # 101, Ashok Kuteer Apartments, Darganagar Colony, Plot 6-3-668-10-63, Punjagutta, Hyderabad - 500082, Andhra Pradesh, India
Tel. No.:	91-40-23409270 / 23411654 / 23411655
Mobile :	91-9848933033 [Mr. P. Muralidhar Rao] 91-9848933044 [Mr. V. Mohan Krishna]
Fax No.:	91-40-23400032
E-Mail :	matrix@hd2.dot.net.in hyd2_matrix@sancharnet.in muralidharrao@matrixbiosciences.com mohankrishna@matrixbiosciences.com
Website :	http://www.matrixbiosciences.com
Factory :	Plot # 20 & 21, Anrich Industrial Estate, IDA Bollaram, Medak District, Andhra Pradesh Tel. No. : 91-8452-279325/279309 Survey # 625, Vadisaleru Village, Rangampeta Mandal, East Godavari District 533106, Andhra Pradesh, India Tel. No. : 91-883-2483101/2483103

DIRECTORS

Name :	Mr. V Shiva Prasad
Designation :	Director
Address :	Plot No. 128, Road No. 1-, Jubilee Hills, Hyderabad – 500033
Date of Birth/Age :	05.06.1967
Date of Appointment :	08.02.2006
Name :	Mr. Makarand Deshpande
Designation :	Director
Address :	2, Chandra Rashyi Apartments, MA Road, Andheri (W) , Mumbai-400058, Maharashtra
Date of Birth/Age :	09.01.1968
Date of Appointment :	18.11.1998
Ceasing Date :	08.02.2006
Name :	Mr. V. Kumuda
Designation :	Director
Address :	Plot No. 200, Walkers Road, Venkateshwar Nagar, Rajajmundry, East Godavari, Andhra Pradesh
Date of Birth/Age :	04.02.1974
Date of Appointment :	01.10.2000
Ceasing Date :	08.02.2006
Name :	Mr. Michael A. Laughlin
Designation :	Additional Director
Address :	10309, Meade Lane, Eden Prairie, MN – 55347, U.S.A.
Date of Birth/Age :	07.07.1970
Date of Appointment :	08.02.2006
Name :	Mr. Omar Byejed Sadeque
Designation :	Additional Director
Address :	130-132, Sindhron Building, Tower 3, 18^th Floor, Wittayu Road, Lumpini, Pathaumwan, Bangkok – 10330
Date of Birth/Age :	16.01.1970
Date of Appointment :	08.02.2006
Name :	Mr. Lorenzo Abad Mapua
Designation :	Additional cum Managing Director
Address :	2A, Kannan Flats, Chamiers Road, Alwarpet, Chennai – 600018
Date of Birth/Age :	14.05.1965
Date of Appointment :	08.02.2006
Name :	Mr. P. Bala Murali Krishna
Designation :	Additional Director
Address :	Flat No. 203, Ashok Kutir Apartments, Durganagar Colony, Punjagutta
Date of Birth/Age :	12.06.1965
Date of Appointment :	08.02.2006

KEY EXECUTIVES

Name :	Mr. P. Muralidhar Rao
Designation :	Operations Manager
Name :	Mr. V. Mohan Krishna
Designation :	Marketing Manager

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. V Shiva Prasad	1333100
Mr. P. Bala Murali Krishna	497880
Mr. Makarand Deshpande	153800
Mr. D. Lakshmi	85000
Mr. V. Krishnaiah	1103420
Mr. V. Kumuda	395000
Mr. P. Sudhalatha	177900
Mr. V. Subbamma	173300
Mr. V. Akhila (Minor)	38900
Ms. V. Mrudula (Minor)	36700
Ms. P. Nymisha (Minor)	5000
Total	4000000

BUSINESS DETAILS

Line of Business :	The company is engaged in producing Medicaments and Aqua Feeds
Products :	Medicaments and Aqua Feeds

PRODUCTION STATUS

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Feed Plant	MT	17280	12000	5063
Feed Supplements	Units	NA	NA	211435

GENERAL INFORMATION

Bankers :

State Bank of India

Saifabad [SIB] Branch, Hyderabad

Facilities :

Secured Loan	(Rs in millions)
Term Loan From SBI	22.741
Cash Credit from SBI	25.785
Cash Credit from SBH	35.763
Corporate Loan from SBI	2.774
Term Loan form SIDBI	2.240
Stand by line of Credit from SBI	0.000
HP Loans	3.116

Banking Relations :	Satisfactory
Auditors :	T. Murty and Associates Chartered Accountants, Flat No. 501, Pavani Plaza, 6-2-984, Khairatabad, Hyderabad – 500004, Andhra Pradesh, India PAN No. : AABPT0488L
Holding Company :	Cargill India Private Limited CIN No. : U15440DL2002PTC118008

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
10000000	Equity Shares	Rs. 10/- each	Rs. 100.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		40.000	40.000	19.950
2] Share Application Money		60.000	0.000	10.050
3] Reserves & Surplus		0.250	0.250	15.012
4] (Accumulated Losses)		[54.240]	(21.277)	0.000
NETWORTH		46.010	18.973	45.012
LOAN FUNDS
1] Secured Loans		23.554	92.422	37.385
2] Unsecured Loans		25.000	41.595	10.487
TOTAL BORROWING		48.554	134.017	47.872
DEFERRED TAX LIABILITIES		0.000	0.000	4.457
TOTAL		94.564	152.990	97.341
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.897	91.528	70.612
Capital work-in-progress		21.313	0.000	1.530
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		2.646	5.599	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.965	47.761	15.936
	Sundry Debtors	20.352	52.929	34.096
	Cash & Bank Balances	0.179	0.239	0.014
	Other Current Assets	5.119	12.705	5.734
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		53.615	113.634	55.780
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	58.821	57.850	29.972
	Provisions	1.149	0.000	0.743
Total Current Liabilities		59.970	57.850	30.715
Net Current Assets		[6.355]	55.784	25.065
MISCELLANEOUS EXPENSES		0.063	0.079	0.134
TOTAL		94.564	152.990	97.341

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004
Sales Turnover [including other income]	277.884	71.427
Profit/(Loss) Before Tax	(46.009)	9.660
Provision for Taxation	--	0.743
Profit/(Loss) After Tax	(46.009)	8.917
Export Value	12.405	7.561
Import Value	31.611	3.153
Total Expenditure	323.893	61.766

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	--	(16.56)	12.48
Net Profit Margin (PBT/Sales)	(%)	--	(16.56)	13.52
Return on Total Assets (PBT/Total Assets}	(%)	--	(22.43)	7.64
Return on Investment (ROI) (PBT/Networth)		--	(2.42)	0.21
Debt Equity Ratio (Total Liability/Networth)		2.35	10.11	1.75
Current Ratio (Current Asset/Current Liability)		0.89	1.96	1.82

LOCAL AGENCY FURTHER INFORMATION

History :

Subject was originally incorporated on 18^th November, 1998 as ‘Matrix Vet Pharma Private Limited’. Subsequently the name was changed to Matrix Biosciences Limited as Public Limited Liability Company. Later, the company has been converted into a Private Company with effect from 13.09.2005 and the Registrar of Companies, Andhra Pradesh has issued fresh certificate of incorporation dated 13.09.2005, consequently the name of the company has been changed from Matrix Biosciences Limited to Matrix Biosciences Private Limited. Again the name was changed to the present name.

Fixed Assets :

Ø Freehold Land

Ø Factory land

Ø Factory building

Ø Electrical Installation

Ø Furniture and Fixture

Ø Plant and Machinery

Ø Other Assets

Ø Boiler

Ø Computer

Ø Vehicles

Ø Office Equipments

Ø Technical Know-how fee

Joint venture with Cargill India Private limited

The company and its management has entered into Joint venture agreement with M/s cargill India Private limited for transferring the majority stake in the company to cargill. As per the agreement the present management holds 49 % of the company total equity shares capital and cargill holds 51 %. The present managements 49 % is proposed to be transferred to M/s Matrix Sea Foods India Private Limited, wherein all the members of the company are members.

Name of the company

MATRIX BIOSCIENCES LIMITED

Presented By

Shri V. Siva Prasad, Managing Director

1) Date and description of instrument creating the change

Dated : 28.10.2002

Hypothecation of book debts, stocks, finished goods to secure cash credit and letter of credit

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 11.500 millions

C C : Rs. 9.000 millions

L C : Rs. 2.500 millions

Total : Rs. 11.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of stocks, book debts, finished goods, raw materials, work in process, existing plant and machinery

Deposit of title deeds of the residential plot in the name of company admeasuring 20 guntas situated in Sy. No. 114, Hafeezpet [v], Serlingampally [m], R. R. Dt., A.P.

Mortgage of Industrial Land and building at Plot No. of land in Sy. No. 20 & 21, Amrich Industrial Estate, Bollaram, Medak Dt., A.P. in the name of the company land area 1.85 acres equivalent to 8954 sq. yds and building 15000 sq. ft.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of Interest 12.60% p.a. with monthly rests

Margin :

C C Stocks : 25%

Book Debts : 40%

L C : 25%

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Saifabad [SIB] Branch, Hyderabad

6) Date and brief description of instrument modifying the charge

Dt. 18.04.2005

Form C-F1 Working Capital Consortium Agreement

Form C-F2 Joint Deed of Hypothecation

Form C-F3 Intersee Agreement

Form C-F6 Letter of undertaking for creating A second charge on fixed assets

Letter of authority authorizing the lead bank to make the first disbursement on behalf of other consortium member bank

Form C-F7

Letter of authority to be given by B Bank. Form C – F8

Form C-10 Memorandum of deposit for creation of further charge where the initial charge is created by ways of deposit of title deeds

Sanction letter copy

Board resolution

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The existing overall working capital limits of Rs. 73.400 millions are now enhanced under consortium to Rs. 93.400 millions

The limits are as follows :

[Rupees in Millions]

	Existing Limits Under Consortium		Present Limits Under Consortium		Total
Fund Based :
Cash Credit [Hyp]	14.500	14.500	14.500	14.500	29.000
Cash Credit [b/d sub limit of CC Hyp]	[8.500]	[8.500]	[8.500]	[8.500]	[17.000]
EPC [Sub Limit of CC Hyp]	[3.500]	nil	[3.500]	Nil	[3.500]
FBD [Sub Limit of CC Hyp]	[4.000]	nil	[4.000]	Nil	[4.000]
DDP cheques [Sub limit of CC Hyp	[3.000]	[3.000]	[3.000]	[3.000]	[6.000]
Addl. Cash Credit	10.000	--	10.000	10.000	20.000
Total FBWC	24.500	14.500	24.500	24.500	49.000
Fund Based :
L.C.	11.000	11.000	11.000	11.000	22.000
Addl. LC	10.000	--	10.000	10.000	20.000
B.G.	1.200	1.200	1.200	1.200	2.400
Total NFB	22.200	12.200	22.200	22.200	44.400
TOTAL	46.700	26.700	46.700	46.700	93.400

PRIMARY :

Cash Credit : pari passu charge on all chargable current assets of the company

COLLATERAL :

Pari passu second charge on plant and machinery and other misc. fixed assets of the company valued Rs. 72.200 millions as per Audited Balance Sheet

Dt. 31.03.2004

[First charge lies with State Bank of India for term loan and corporate loan]

PARI PASSU SECOND CHARGE ON THE FOLLOWING PROPERTIES [First charge lies with State Bank of India for term loan and corporate loan]

ii. EM on Ac 3.39 cents of factory land and buildings constructed thereon situated at Vadiseleru [v] Rangampet [m], E.G. Dt.

iii. E.M. of industrial land admeasuring Ac 1.85 cents with buildings constructed thereon at Plot No. 20 & 21, ANRICH Industrial Estate, IDA Bollaram [M] Dt. Belonging to the company.

iv. EM of vacant site [residential plot] admeasuring 2420 sq. yds located at Survey No. 114, [part], Hafeezpet [vg], Miyapur, Sherlingampally Municipality [near BHEL HIG Colony] belonging to the company

Margins :

Raw Materials : 25%

Stocks in Process : 25%

Finished goods : 25%

Book Debts : 40%

Cover period for receivables : 90 days

SBI : Interest Rate :

Cash Credit : 2.50% above SBAR with a min of 12.75% p.a. with monthly rests.

EPC : As per RBI guidelines at present 7.10% p.a. with monthly rests

SBH : Interest Rate : 12.75% with monthly rests

No charge in other terms and conditions.

Name of the company	MATRIX BIOSCIENCES LIMITED
Presented By	V. Shiva Prasad, Managing Director
1) Date and description of instrument creating the change	Agreement for Equipment loan and Guarantee date : 10.03.2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.550 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	INO D. G. Set
4) Gist of the terms and conditions and extent and operation of the charge.	Loan payable in monthly installments
5) Name and Address and description of the person entitled to the charge.	HDFC bank House Senapati Bapat Marg, Lower Parel (W) Mumbai-400013
6) Date and brief description of instrument modifying the charge	Not Available
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Available

Name of the company

MATRIX BIOSCIENCES LIMITED

Presented By

V. Shiva Prasad, Managing Director

1) Date and description of instrument creating the change

Dated : 24.02.2005 Agreement of loan for overall limit form C-1

Agreement of Hypothecation of Goods and Assets Form C-2

Agreement of Pledge of Goods and Assets Form C-3

Letter regarding the grant of individual limits within the overall limit. Form C-5

Sanction Letter

Resolution Copy

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 20.000 millions

CC	Rs. 10.000 millions
LC	Rs. 10.000 millions
Total	Rs. 20.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Security : Primary Pari Pasu first charge on all chargeable current assets of company.

Collateral : Pari Passu second charge on plant and machinery and other miscellaneous fixed assets of the company.

First charge with us for the term loan.

Pari Passu second charge on the following properties (first charge lies with State Bank of India for Term Loan and Corporate Loan)

Extension of Equitable Mortgage on Acres 3.39 cents of factory land and building constructed thereon situated at vadiseleru Renamed E.G. Dt.

Extension Mortgage of industrial land admeasuring Acres 1.85 cents with building constructed thereon at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak belonging to the company.

Extension Equitable Mortgage if vacant site admeasuring 2420 sq. mtr. Located at Eurvey No 114 Hafeezpet Miyapur, Sherlingampally belonging to the company

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 2.50 %

Above SBAR present rate of interest 12.75 % p.a.

Margin :
Raw Material	25 %
SIP	25 %
FG	25 %
LC	15 %
Book Debts	40 %

5) Name and Address and description of the person entitled to the charge.

State bank of India

Saifabad branch

Hyderabad

6) Date and brief description of instrument modifying the charge

NA

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

NA

Name of the company

MATRIX BIOSCIENCES LIMITED

Presented By

V. Shiva Prasad, Managing Director

1) Date and description of instrument creating the change

Dated : 28.10.2002 Hypothecation of Book debts, stocks, Finished Goods to secure cash credit and letter of credit

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 11.500 millions

CC	Rs. 9.000 millions
LC	Rs. 2.500 millions
Total	Rs. 11.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Stocks, Book debts, Finished goods raw materials, work in progress Existing Plant and Machinery

Deposit of Title deeds of the residential plot in the name of company admeasuring 20 guntassitated in Sy. No 114 Hafeezpet Miyapur, Sherlingampally RR Dt A.P.

Mortgage of Industrial land and building at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak in the name of the company land area 1.85 acres equitant to 8954 s. yards and building 15000 sft.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 12.60 % p.a.

With monthly rests

CC	25 %
LC	25 %

5) Name and Address and description of the person entitled to the charge.

State bank of India

Saifabad branch

Hyderabad

6) Date and brief description of instrument modifying the charge

Dt: 06/07/2004

Form C-Fi Working capital consortium Agreement

Form C-F2 Joint deed of Hypothecation

Form C-F3 Interest Agreement

Form C-F6, Letter of undertaking fo9r creating a second charge on fixed assets.

Letter of authority the lead bank to make the first disbursement on behalf of other consortium member bank

Form C-F7

Letter of authority to be given by b bank to A Bank From C-F3

From C-10 Memorandum of deposit for creation of future charge where the initial charge is created by way of deposit of title deeds

Letter of undertaking by the company not to create any future charge over their property and assets including uncalled capital

Sanction letter copy

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

State Bank of Hyderabad, Industrial finance branch punjagutta Hyderabad has joined as consortium member with State Bank of India, Saifabad Branch Hyderabad for financing working capital limits with state Bank Of India as Lead bank. The existing overall working capital limits sanctioned earlier under sole banking of Rs. 20.700 millions are now enhanced under consortium to Rs. 53.400 millions the limits are as follow.

	Existing under SBI	Present limits under consortium		Rs in millions
		SBI	SBH
Fund Based cash credit Hyp	11.500	14.500	14.500	29.000
Cash credit	--	(8.500)	(8.500)	(17.000)
Stand by line of credit	2.700	--	--	--
EPC Sub limit of Hyp	(1.500)	(4.000)	(--)	(4.000)
DDP Cheques	--	(3.000)	(3.000)	(6.000)
Total FBWC	14.200	14.500	(14.500)	29.000
Non Fund Based
LCs	6.500	11.000	11.000	22.000
BGs	--	1.200	1.200	2.400
Total NFB	6.500	12.200	12.200	24.400
Total FB + NFB	20.700	26.700	26.700	53.400

Primary Pari Pasu first charge on all chargeable current assets of company.

Collateral : Pari Passu second charge on plant and machinery and other miscellaneous fixed assets of the company.

First charge with us for the term loan.

Pari Passu second charge on the following properties (first charge lies with State Bank of India for Term Loan and Corporate Loan)

Extension of Equitable Mortgage on Acres 3.39 cents of factory land and building constructed thereon situated at vadiseleru Renamed E.G. Dt.

Extension Mortgage of industrial land admeasuring Acres 1.85 cents with building constructed thereon at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak belonging to the company.

Extension Equitable Mortgage if vacant site admeasuring 2420 sq. mtr. Located at Eurvey No 114 Hafeezpet Miyapur, Sherlingampally belonging to the company

Margin :
Raw Material	25 %
SIP	25 %
FG	25 %
Book Debts	40 %
Cover period for receivable	60 days

SBI : Interest Rate Cash credit : 2 % above SBAR sith a min of 12.25 % p.a. with monthly rests.

ECP : as per RBI guidelines at present 7.10 % p.a. with monthly rests.

SBI interest rate Cash credit as applicable to risk rating SBH 4 @ 3.25 % above SBH PLR present applicable reate being 14.25 % p.a. with monthly rests with works out to 14.09 %

No change in other terms and conditions.

Name of the company

MATRIX BIOSCIENCES LIMITED

Presented By

V. Shiva Prasad, Managing Director

1) Date and description of instrument creating the change

Dated 09/02/2004

General agreement for the grant of medium term advance to small scale industries and hypothecation of movable book debts and other assets

Agreement for medium term loan agreeing to mortgage immovable

Memorandum of deposit for creation of further charge where the initial charge is created by way of mortgage of deposit of title deeds.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 4.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Stocks, Book debts, Finished goods raw materials, work in progress Existing Plant and Machinery and all other chargeable current assets

Hypothecation of existing and future Fixed assets.

Deposit of Title deeds of the residential plot in the name of company admeasuring 20 guntassitated in Sy. No 114 Hafeezpet Miyapur, Sherlingampally RR Dt A.P.

Mortgage of Industrial land and building at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak in the name of the company land area 1.85 acres equitant to 8954 s. yards and building 15000 sft.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 12.25 % p.a.

With monthly rests

The term loan of Rs. 4.500 millions is repayable quarterly installments of Rs. 0.375 millions 1^st installment be paid on the day of 26.06.2004

5) Name and Address and description of the person entitled to the charge.

State bank of India

Saifabad branch

Hyderabad

6) Date and brief description of instrument modifying the charge

Not Available

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Available

Name of the company

MATRIX BIOSCIENCES LIMITED

Presented By

V. Shiva Prasad, Managing Director

1) Date and description of instrument creating the change

Dated : 28.10.2002 Hypothecation of Book debts, stocks, Finished Goods to secure cash credit and letter of credit

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 11.500 millions

CC	Rs. 9.000 millions
LC	Rs. 2.500 millions
Total	Rs. 11.500 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Stocks, Book debts, Finished goods raw materials, work in progress Existing Plant and Machinery

Deposit of Title deeds of the residential plot in the name of company admeasuring 20 guntassitated in Sy. No 114 Hafeezpet Miyapur, Sherlingampally RR Dt A.P.

Mortgage of Industrial land and building at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak in the name of the company land area 1.85 acres equitant to 8954 s. yards and building 15000 sft.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest 12.60 % p.a.

With monthly rests

CC	25 %
LC	40 %

5) Name and Address and description of the person entitled to the charge.

State bank of India

Saifabad branch

Hyderabad

6) Date and brief description of instrument modifying the charge

Dated 09/02/2004

General agreement for the grant of medium term advance to small scale industries and hypothecation of movable book debts and other assets

Agreement for the grant for small industrial advances.

Agreement for medium term loan agreeing to mortgage immovable (corporate loan)

Ancillary Agreement for medium term loan against pledge of movable machineries (corporate loan)

Supplemental General Agreement for the grant of small industrial advance and hypothecation of goods book debts and other assets.

Memorandum of deposit for creation of further charge where the initial charge is created by way of mortgage of deposit of title deeds.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The limit are revised as follows :

	(Rs in millions)
	Existing Limits	Revised Limits
CC	11.500	11.500
EPC (Sublimit)	(1.500)	(1.500)
FBD (Sublimit)	(1.500)	(1.500)
LC	6.500	6.500
Stand by line credit	--	2.700
Total	18.000	20.700

Hypothecation of all chargeable current assets of the company present and future.

Equitable Mortgage on Acres 3.39 cents of factory land and building constructed thereon situated at vadiseleru Renamed E.G. Dt.

Hypothecation of fixed assets and the company both existing and future.

Extension Mortgage of industrial land admeasuring Acres 1.85 cents with building constructed thereon at Plot No 20 & 21 Anrich insdustrial Estate, IDA Bollaram, Madak belonging to the company.

Extension Equitable Mortgage if vacant site admeasuring 2420 sq. mtr. Located at Eurvey No 114 Hafeezpet Miyapur, Sherlingampally belonging to the company

There is no change in other terms and conditions.

AS PER WEBSITE

Matrix Bio sciences Limited is a soundly integrated yet decentralized professional team driven company.

Their unique entrepreneurial approach to their work sets them apart and is a key to their success. Their culture is built upon a set of core values, which define their organization.

They are passionate about their aim to use progressive inventive ideas in science and technology, in providing innovative nutritional solutions to their customers.

Matrix Biosciences Limited is dedicated to the principles of sustainable development in aquaculture. For over half a decade, they have embraced and advocated responsible aquaculture practices. This belief helps consumers lead healthier lives, customers prosper, stockholders gain, employees achieve and communities thrive.

They believe their employee’s experiences and unique abilities and their 900 dealers over many countries are vital to their growth. It has helped drive a 100 percent increase in net income every year since 1998 and create loyal customer relationships.

Matrix Biosciences, India, enters into joint venture with Cargill Animal Nutrition
by Suzi Fraser
09/24/2005

Matrix Biosciences Limited a Hyderabad-based manufacturer of pharmaceuticals, chemicals and feeds for aquaculture, has recently entered into a Joint Venture with the world leader in nutrition and feed technology Cargill Animal Nutrition, USA.

The Joint Venture brings together the strengths of the partners in aqua feed to match international standards. The aqua feed plant is located near Rajahmundry in East Godavari District, Andhra Pradesh, India.

To mark the start of the joint venture, Matrix hosted a farmer program on Tuesday, September 20, 2005 in Rajahmundry. The program was attended by 300 farmers and feed dealers from all over India. Two Directors of Cargill Animal Nutrition, Dr. Lorenzo Mapua, and Mr. Omar Saddeque attended the program. The CEO of Matrix Biosciences, Mr. V. Siva Prasad presided over the function. Mr. Makarand Deshpande, one of the Directors of Matrix was also present.

Dr. A. Victor Suresh, who worked with both Matrix Biosciences and Cargill Animal Nutrition, to facilitate the transfer of feed technology from CAN to Matrix, was the guest of honor at the program.

Two new shrimp feed brands, LEGEND and MAGIC, were launched at the meeting.

Speaking at the program, Mr. Saddeque, who is assuming the role of new business development in Asia, remarked that Cargill has a long history in global aquaculture and through its increasing commitment to Asian aquaculture, will deliver programs to help Indian aqua farmers to get the benefits of the latest advances in feed and farming technologies.

Dr. Mapua stated that Cargill Animal Nutrition is planning to become the number one company in shrimp nutrition in India within the next five years. Mr. Siva Prasad explained how Matrix Biosciences has grown in the last five years and how it had brought advanced technology to its feed production facility. He felt that Cargill’s global technology and its determination to be competitive in global markets would help the joint venture to be a dominant player in the Indian shrimp feed market.

Cargill India to pick up 51% stake in Matrix Biosciences

Bureau

New Delhi , Jan. 8

The Foreign Investment Promotion Board (FIPB) has cleared Cargill India's proposal to pick up a 51 per cent controlling stake in Hyderabad-based Matrix Biosciences Ltd, according to sources.

Matrix is a player in the animal and aquaculture feed manufacturing segment. Cargill India is a wholly-owned subsidiary of Cargill Mauritius.

Matrix Biosciences plant on stream

HYDERABAD: The Hyderabad-based Matrix Biosciences (earlier known as Matrix Vet Pharma) announced that its shrimp feed plant at Rajanagaram (near Rajahmundry) has gone on stream recently. Originally started as a formulations and medicaments company for aqua, veterinary and poultry in 1999, the company changed its name and entered into a technology and service agreement with Cargill Inc., a U.S.-based firm, to provide technical expertise in design and erection of the feed plant.

The agreement also provides for technical expertise in production, quality and marketing. According to a company press release issued here on Thursday, Matrix will be given exclusivity of Cargill Technology in India and is also authorised to use Cargill's brand name in marketing its products. Matrix's feed mill has a total capacity of 20,000 tones annually.

Matrix Bio plant goes on stream

Bureau

Hyderabad , April 2

MATRIX Biosciences Ltd has announced that its shrimp feed plant at Rajanagaram, near Rajahmundry in East Godavari district, has gone on stream during the second half of March.

Matrix has set up a feed mill with total capacity of 20,000 million tones per annum with technology and service support from Cargill Inc, US.

In addition, Cargill, through its Animal Nutrition business unit, will provide know-how, consultation and training to build and operate the shrimp feed mill.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.24
UK Pound	1	Rs. 86.95
Euro	1	Rs. 57.33

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	6
--RESERVES	1~10	-
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		39

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions